What cannot be in doubt at present is that everyone is having a tough time of it. Most companies have had to take stock of how they are operating externally and internally. Many tough decisions have been taken on the basis of the findings.

The first department that is usually targeted in any cost cutting exercise is the transport. Companies who distribute will usually go cap in hand looking for a rate decrease, the carrier will usually cave after a slow and painful beating with the cost cutting stick, which will mean they will have to look at ever more creative ways to claw back revenue lost from the rate decrease, and so the cycle continues.

An important question that needs to be asked is, have you ever considered looking at whether your goals are aligned with your transport supplier? Are they looking to keep your costs low and to drive inefficiency out? Or, are they trying to maximise the revenue they are earning from their fixed fleet?

Conflicting goals between a supplier and distributor can cause friction and mistrust.

Working with a 4PL eliminates this type of issue. A company that manages your transport spend like it was their own is far more likely to deliver you sustainable, tangible savings.

A 4PL typically only makes money if they save money, their objectives are to find the best rates in the market and to makes sure vehicles leave the door full. They should also be able to report on all the hidden costs within your transport network. An uncomfortable process, but one well worth doing if you want to strive for supply chain perfection.

If you're interested in aligning your goals, driving out inefficiencies and powering down costs, get in contact today.